4 AGREEMENT This Agreement is made and entered into as of the 1 st day of April, 2013 by and between the companies comprising the Minneapolis-St. Paul Contract Cleaners Association, the names of which are listed at Appendix I, {hereinafter individually called the "Company") and the Service Employees International Union Local 26 (hereinafter called the "Union"). WITNESSETH WHEREAS, the employees of the Company have elected to bargain collectively with their respective employers, and for said purpose a majority of same have affiliated themselves as members of the Service Employees Union Local 26 and have chosen said Union to bargain collectively in their behalf for wages, hours of employment and working conditions. ARTICLE 1: TERRITORIAL JURISDICTION 1.1 This Agreement shall be effective within the territorial jurisdiction of the Union within the seven (7) county Metropolitan Area. ARTICLE 2: RECOGNITION 2.1 The Company recognizes the Union as the exclusive bargaining agent for its employees engaged in the contract cleaning industry, wherever employed in the covered territory, performing janitorial services, including all janitors, porters, cleaners, if not previously covered by 4

5 agreements with other Unions, and expressly agreed to by the Company, but exclusive of: (a) All executive, salaried supervisors, sales employees, clerical employees and shop employees of contract cleaners. (b) Hourly paid supervisors, foremen. An "hourly paid supervisor" or "foreman" is defined as an employee with the authority to hire, discharge, discipline or otherwise effect changes of the status of employees on a job. Whenever the word "Company" is used in this Agreement, it shall apply only individually to the companies covered by this Agreement, i.e. those listed at Appendix I, and not to any of those excluded; and none of the provisions of this Agreement shall apply to the excluded employees. ARTICLE 3: UNION MEMBERSHIP 3.1 Union Shop: The Company agrees that all employees presently employed and all new employees shall, as a condition of employment, join the Union within thirty (30) days after the effective date of this Agreement and shall continue their membership during the life of this Agreement. 3.2 Dues Check-Off: (a) Dues Withholding: The Company agrees to withhold from the wages of each employee working over twenty- four (24) hours in 5

6 any calendar month, and pay to the Union, all initiation fees and dues required by the Union. The Company will deduct such dues and initiation fees on the first pay period of each month and immediately forward the amount with a digital spreadsheet version (in PDF format) of a list of employees' names, addresses and phone numbers. In addition, quarterly, the Company will also provide the Union with Company start date, employee's status as full-time or part-time, and worksite. The Union will notify the Company in advance of any changes in dues or initiation fees, in writing. The Union agrees to indemnify and save harmless the Company from any and all liabilities if may suffer as a result of agreeing to be bound by Article 3, including court costs and reasonable attorneys' fees. (b) Liquidated Damages: The Company agrees that all Union dues and initiation fees deducted from the employee's wages will be considered past due if not received by the Union on or before the fifteenth (15th) day of the month following said deductions. If such dues and initiation fees are not received by the Union within sixty (60) days of the past due date, the Company shall pay to the Union liquidated damages amounting to twenty per cent (20%) of the total dues and initiation fee amounts that have not been received by the Union in a timely manner. In addition to the twenty per cent (20%) liquidated damage amount noted herein, the Company agrees to pay to the Union simple interest at the rate of ten per cent (10%) on all unpaid dues and initiation fees, court costs and reasonable attorneys' fees incurred by the Union in collecting said dues and initiation fees. 6

7 3.3 Check-Offs or other voluntary contributions: The employer agrees to make payroll deductions for each employee who had authorized such deduction in writing in the amounts and at the times stated in the authorization into the Union's Committee on Political Education Fund, Property Services Civic Engagement (PSCE) Fund, or other legally constituted funds as established by the union. The employer agrees to remit the amount deducted to the Union within seven (7) days after the deductions are made by the employer. 3.4 Probationary Employees: All employees hired either prior to or after the effective date of this Agreement shall not be considered regular employees of the company until after a probationary period of sixty (60) days. During the probationary period, the employees will be represented by the Union, but will not be covered by any of the terms and conditions of this Agreement and may be discharged with or without cause and without recourse to the grievance procedure of this Agreement. 3.5 Union Obligation: The Union will provide all new members with a copy of the wage rates within thirty (30) days of their application to the Union. ARTICLE 4: NON-DISCRIMINATION 4.1 Non-Discrimination Principle: There shall be no discrimination against any present or future employees by reason of race, creed, color, age, religion, national origin, sex, disability, veteran status, sexual orientation, marital status or Union membership. 7

8 4.2 Subsequent Proceedings: The negotiations which culminated in this Agreement were an equal effort by both the Company and the union with equal responsibility for the results. Therefore, in the event the Company is charged or sued because of an alleged equal employment violation arising out of these terms and conditions of this Agreement, on the basis of race, creed, color, age, religion, sex or national origin (under state, federal or local laws or regulations), the Union shall be immediately joined as a party to such charge or suit and the Union agrees to defend the Company's position and bear equally all responsibility and costs that may result from such proceedings. 4.3 Arbitration of Discrimination Claims. Any claim which is cognizable under Title VII of the Civil Rights Act of 1964 as amended or under any other applicable federal, state or local civil rights legislation shall not be arbitrable except by written mutual consent of the Company and the Union. Any such claim shall first be submitted to the Company with the appropriate evidence necessary to ascertain the merits of the claim. Absent such mutual consent, the sole recourse of an employee with such claims shall be the government agency having jurisdiction over such claim. The Union and Company agree to make a good faith effort to try to resolve any such issue. 4.4 The Company agrees that in the event an issue or inquiry arises involving documentation of work authorization status of a nonprobationary employee, the Company shall promptly notify the employee in writing of the specific problem and forward a copy of such notification to the Union. 8

9 a. In the case of an 1-9 Audit by Immigration and Customs Enforcement, the Company agrees to notify ICE immediately of the existence of a Collective Bargaining Agreement that determines the terms and conditions of employment of its employees. b. The employee will, upon written request and consistent with the business needs and legal obligation of the employer, be permitted unpaid time off up to 120 days, with no loss of seniority, for the purposes of correcting the identified problem, provided the employer is given adequate notice of planned absences and verification of the reason. c. Lawful changes to an employee's work authorization documentation (e.g., name change, correction of social security number, etc) shall not be cause for a break in employment or a re-hire. d. An employee terminated as a result of alleged problems with documentation of work authorization shall be paid out all accrued vacation. e. Employees terminated for issues regarding documentation of work authorization shall be placed on the layoff list and will maintain their seniority if they are able to lawfully resolve their work authorization issue within 12 months of the date of termination. 9

10 4.5 In the event of the passage of federal immigration reform, the Union and the Company agree to meet and confer on issues that may surface affecting terms and conditions of employment. It is expressly agreed that this provision shall not constitute a reopener of this agreement. The agreement in its entirety shall remain in full force and unchanged. 4.6 The Company shall accommodate members who request time for religious prayer at religiously appropriate break times during work hours according to existing past practice, provided the employees complete their full workday obligations without additional straight time compensation. If no past practice exists, the Company shall make accommodations for prayer time during break times. ARTICLE 5: PICKET LINES 5.1 The Company shall not require any employee to go through a picket line of a striking Union. However, the Union agrees that in the event the Company becomes involved in a controversy with another Union, the Union will do all in its power to help effect a fair settlement. ARTICLE 6: PHYSICAL REQUIREMENTS 6.1 Physical Examination: In any case where there is a question as to the employee's ability to carry on or do the work, the Company shall have the right to require a physical examination, and if such employee is found to be physically unfit to perform his or her duties, the 10

11 employment relationship may be terminated. The Company shall also have the right to require a physical examination of all new employees. The Company shall pay the expense of such examination. 6.2 Drug Testing: The Company reserves the right to establish and enforce any lawful policy concerning employee use, possession or transfer of drugs or testing for drugs as a condition of employment. In the event there are reasonable grounds to suspect an employee is using drugs or under the influence of drugs on the job, the Company reserves the right to impose any and all discipline, including termination for refusal to submit to lawful testing. 6.3 Security and Background: The Company reserves the right to conduct necessary personal background investigations where and whenever the placement of the employee involves sensitive work environment. Fingerprinting may also be required. Any refusal to supply or authorize access to information or lack of cooperation on the part of the employee in the course of such investigation may result in termination of employment. ARTICLE 7: JOB CLASSIFICATIONS For the purpose of this Agreement the following classifications will be applicable: 7.1 Full-time General Cleaners. Regularly scheduled employees of forty (40) hours per week who perform cleaning duties in buildings such as, but not limited to, remove and dispose of trash, waste and other 11

12 refuse, wet and damp mop floors, sweep, dust mop floors, dust furniture and other office equipment, operate power cleaning tools, such as floor buffers, commercial vacuums, clean washrooms, vacuum carpets, plus other related duties, as assigned by supervisor. 7.2 Part-Time General Cleaners: Regularly scheduled employees assigned fewer than the scheduled full-time hours. 7.3 Repair Person/Specialty Crew: These employees' duties shall include general handyman duties such as, but not limited to, minor repairs to restroom fixtures; installing, repairing or re-hanging dispensers; minor repairs to doors, windows or furniture; ladder work, snow removal, carpet cleaning, striping & waxing, cleaning of interior glass, or similar duties of a project crew, duties may also include general cleaning duties as described in Article Benefits of Part-Time Employees: Part-time employees shall be entitled to the following benefits: Paid holiday as defined in Article 10 Paid vacation as defined in Article 11 Paid funeral leave as defined in Article 19 Health Care benefits as defined in Article Window Cleaning: Employees who are assigned to clean perimeter windows for one (1) hour or more in duration will be paid at the prevailing journeyman rate of pay. Window cleaning pay will not apply to first floor windows, entryway glass or other interior glass. 7.6 Supervisors doing union work. Supervisors or other non-unit personnel 12

13 shall be allowed to perform bargaining unit work in cases of (1) bona fide emergencies; (2) when no bargaining unit employees are available to complete a shift that has already begun; and such work does not result in the layoff of a bargaining unit employee. Additionally, supervisors or other non-unit personnel shall be allowed to perform bargaining unit work for up to 50% of their working hours in buildings of less than 150,000 square feet of occupied space provided at least one additional cleaner is employed in the building. ARTICLE 8: WAGES 8.1 Wages: Wages during the term of this Agreement shall be paid, as set forth in Appendix II and Appendix Ill attached hereto and made a part of this Agreement. Appendix Ill shall cover the Protected employees working in the buildings that were previously covered under BOMA Agreements or Appendix Ill of contract cleaners Agreement. ARTICLE 9: OVERTIME 9.1 Overtime: Overtime shall be paid at the rate of time and one-half the employee's regular hourly rate to all employees covered by this Agreement for all hours actually worked in any week in excess of forty (40) hours. ARTICLE 10: HOLIDAYS 10.1 Celebrated Holidays: (a) The following holidays, when not worked will be paid at the 13

14 straight time rate. All work performed on the following mentioned days will be paid for at the additional straight time rate, provided that the employees concerned work on the day before and the day after the holiday and that employees who received written consent of the Company to be absent on either the day before or the day after the holiday shall not forfeit their holiday pay. New Year s Day Labor Day Memorial Day Thanksgiving Day Independence Day Christmas Day The above holidays will be paid to both part-time and full-time employees. However, part-time employees must have 9 months of continuous service to be eligible for this pay. (b) (c) Floating Holiday. In addition to the holidays specified in 10.1 (a) covered full-time employees shall be determined by mutual agreement between the employee and the Company. Part-time employees who have 3 years of continuous service shall also receive one floating holiday as a paid holiday. Employees shall be permitted to use the floating holiday in four hour increments. Christmas Eve for employees normally scheduled to work forty (40) hours per week. If Christmas Eve falls on a regular work day, such employees shall be required to work only five (5) hours, but shall be paid for eight (8) hours. The actual hours of work for that day shall be consistent with the requirements of the individual building and tenants 14

15 ARTICLE 11: VACATIONS 11.1 Vacation Entitlements: As of January 1st of 2014, and any calendar year thereafter, each full-time employee employed at the time shall be entitled to have and shall receive vacation with pay in accordance with the schedule set forth in Length of Vacation and Vacation Pay Formula: All vacation is based on continuous employment. Seniority is based on an employee's hire date. Transition from part time to full time, a change in contractors as a result of a building changing contractors, and layoffs, shall not result in a break in calculation of continuous employment for the purpose of determining an employee s seniority. Vacation is calculated (and accrued) on January 1 st of each calendar year, based on hours paid during the previous calendar year, according to the following schedule: SENIORITY VACATION ACCRUAL RATE Less than 1 Year.0192 hours per hour paid* 1-5 Years.0385 hours per hour paid* 6-10 Years.0577 hours per hour paid* Years.0769 hours per hour paid* 20+ Years.0962 hours per hour paid* *For these calculations, the following applies - :hours paid excludes overtime - seniority is based on the employee's date of hire - a change in status (from full time to part time and vice- versa) 15

16 does not constitute a break in employment - all vacation accruals shall be rounded up to the nearest hour Vacation accruals shall be subject to the following maximums: (a) Employees with less than one (1) year seniority shall receive up to forty (40) hours of vacation with vacation pay. (b) One (1) to five (5) Years Seniority: any employees who are on the payroll of the Company on the first day of January and have been employed for at least one (1) but fewer than six (6) consecutive years, shall receive up to eighty (80) hours of vacation with vacation pay. Example: Person with two (2) years seniority who had 2,080 paid hours in 2013 would receive 80 hours of vacation on January 1, (c) Six (6) to Ten (10) Years Seniority: any employees who are on the payroll of the Company on the first day of January and have been employed for at least six (6) but fewer than eleven (11) consecutive years shall receive up to one hundred and twenty (120) hours of vacation with vacation pay. Example: Person with seven (7) years seniority who had 2,080 paid hours in 2013 would receive 120 hours of vacation on January 1, (d) Eleven (11) to Nineteen (19) Years Seniority: Any employees who are on the payroll of the Company on the first day of January and have been employed for at least eleven (11) but fewer than twenty (20) consecutive years, shall receive up to one hundred and sixty (160) hours of vacation with vacation pay. 16

17 Example: Person with eleven (11) years seniority who had 2,080 paid hours in 2013 would receive 160 hours of vacation on January 1, (e) Twenty (20) Years Continuous Service: Any Employees who are on the payroll of the Company on the first day of January and have been employed for at least twenty (20) consecutive years, shall receive up to two hundred (200) hours of vacation with vacation pay. Example: Person with twenty (20) years seniority who had 2,080 paid hours in 2013 would receive 200 hours of vacation on January 1, Vacation Period: Vacation taken before May 1st or after September 30th of any year may be taken only consistent with the reasonable demands of the business. Vacation shall not be used in less than one (1) day increments. A "day" shall mean the number of hours the employee is regularly scheduled to work. The employee with the greater seniority shall have preference provided the employee has submitted their requests between December 1st and December 31st for vacation during the following 12 months. Any vacation requests submitted after January 1st will be awarded on a firstcome, first-award basis Holidays Falling During Vacation Period: Employees who are allotted a vacation during a week in which a holiday falls, shall be given an extra day off or the equivalent in pay at the discretion of the 17

18 Employer Vacation for Terminated Employees: Vacation for Terminated Employees: Employees are expected to provide the company with a one week notice of the employee's intent to resign. Employees who give the notice will be paid terminal vacation pay. The term "terminal vacation pay" means vacation which has not yet been used by the employee. An employee who fails to give the required one week written notice or is discharged for cause will not be eligible for any terminal vacation pay Vacation for Part Time Employees: SENIORITY VACATION ACCRUAL RATE 4-7 years.0192 hours per hour paid* 8+ years.0385 hours per hour paid* *Hours paid excludes overtime. Vacation accruals shall be rounded up to the nearest hour One time transition for January 1st 2014: for employees hired before January 1st 2013, the hourly vacation accrual system from the previous contract will continue to accrue through December 31st 2013, and any unused accrual as of December 31st 2013 equal to or less than 40 hours shall be added to the amount of vacation they will receive per section The Company will make available a written calculation of each employee's earned and unused vacation 18

19 each month during the transition period from 1/1/13-1/1/14. Only vacation hours carried over from 2013 shall be eligible to be paid as terminal vacation pay under Article 11.5 during the 2014 calendar year Carry over: an employee may carry over up to forty (40) hours of any unused vacation from the previous year. Carry over from the previous year is separate from and in addition to maximums in With the paycheck for the first full pay period of each calendar year, the Company will make available a written calculation of each employee's earned and unused vacation. ARTICLE 12: CONTRACTING NEW ESTABLISHMENTS 12.1 Entitlement to Undertake New Contracts: It is understood that any Union contractor is entitled to negotiate a contract with any potential customer who might have a Union agreement of his/her own employees who are covered by an Agreement with the Union Obligations to Union Members when contracts for services covered under this Agreement change hands between companies whose employees are members of SEIU Local26: 12.3 When the Company signs a contract to provide covered services at a property where such services are provided by another contractor whose employees are SEIU Local 26 members, the newly arriving Company will offer employment to the non-probationary employees of the departing contractor subject to the following conditions: 19

20 (a) The customer may specifically disqualify employees of the departing contractor and such employees shall not be hired by the arriving Company. The departing contractor will then either (a) place the disqualified employee(s) in another available substantially comparable position without loss of benefits or seniority or, if no such position is available, (b) layoff the disqualified employee(s) subject to the provisions of Article 16 of this agreement. Customer decisions in this regard shall be final and binding and not subject to arbitration. (b) (c) (d) Any employees not disqualified by the customer shall be required to pass the arriving Company's normal selection and hiring processes, including but not limited to background checks and drug screening, before becoming employed by the arriving Company. Any employees of the departing contractor who do not pass such processes shall not be hired by the arriving company. Employees hired by the newly contracting Company will retain their seniority date as recorded by the departing Company, as well as their previous pay rate, vacation accrual levels, full time or part time status, and eligibility for benefits(without a new probationary or waiting period). Initial shift assignments, work schedules and work assignments given to employees hired shall be exclusively the determination 20

21 of the arriving company and no grievance concerning any such decision shall be subject to the contractual arbitration procedure. Any non-disqualified employees who are not hired by the arriving company shall be laid off subject to the provisions of Article 16 of this Agreement, by the departing company. (e) (f) (g) The outgoing contractor shall pay the employee for their terminal vacation pay as described in Article The contractor taking over the location shall allow employees to request the equivalent number of unpaid days off as that employee had accrued as vacation days under the outgoing contractor. Under no circumstances would a re-bid or a change in contractors result in having fewer full-time employees than are already employed at that building, either by contract or in-house staff, that are presently members of SEIU Local 26, unless there is a specification change by the customer. Such change in specifications must be given in writing to the union, and must have a reasonable relationship to the number of hours reduced, but the company shall not be required to disclose any confidential and proprietary information. The contractor shall continue to have the obligation to the Union members employed by the customer or all previously "protected" employees who were formerly employed by the customer or contractor (see Appendix IV) to provide 21

22 employment in the same or any other building with no reduction of pay or other benefits Company will provide the Union with the following information, within a reasonable period of time, for all accounts lost to non-union companies. Name of building Date of contract termination Owner or managing agent Address Incoming contractor (if known by Company) Number of full-time and part-time employees ARTICLE 13: OTHER AGREEMENTS 13.1 "Most Favored Nation" Clause: No agreement shall be made by the Union with other employers in this industry which contains any terms more favorable to any employer than the terms in this Agreement, including Territorial Jurisdiction. The Union agrees to inform the Companies signatory to this Agreement upon the signing of this Agreement by any new signatory Building Staffing Requirements: All Buildings or Office Parks in excess of 250,000 square feet as recorded in the SOMA's Standard of Measurements and The Building Rent Rolls shall be staffed at no less than 80% full time cleaners. All buildings with at least 500,000 square feet shall be staffed at 100% full-time employees Under no circumstances would a re-bid result in having fewer fulltime employees than are already employed at that building, either by 22

23 contract or in-house staff that are presently members of SEIU Local 26. ARTICLE 14: GOVERNMENT CONTRACTS 14.1 Execution of Government Contracts: Notwithstanding any other provisions of this Agreement, the wage rates, benefits and conditions of employment for services performed pursuant to contracts with any agency, department or division of the United States Government or for services performed in any premises leased and rented by any such agency, department or division shall be the wage rates, benefits and conditions of employment established by the Secretary of Labor. Said rates; benefits and conditions of employment shall apply only to the premises stated in this Article. ARTICLE 15: HEALTH BENEFITS 15.1 As a condition of receiving health insurance coverage under this Article, employees shall sign appropriate documentation authorizing the Company to deduct such contributions from wages. Any employee not signing the appropriate authorization document shall not be eligible for coverage as provided herein Applicability of Health Care Benefits: The benefits described herein are applicable to employees as follows: (a) Full-time Employees: The first day of the first calendar month following completion of six (6) months of full-time employment. 23

24 (b) (c) Employees whose insurance has been canceled for any reason and who return to active service with immediate prior employer within one (1) month of the date of cancellation of insurance will again be eligible for insurance starting the first of the month after commencement of active continuous fulltime employment. Employees whose insurance has been canceled for any reason and who return to active service with the immediate prior employer after one (1) month, but prior to four (4) months from the date of cancellation of insurance will again be eligible for insurance starting on the first of the month, two (2) months after commencement of active continuous full-time employment; provided that this provision does not apply to employees whose insurance has been canceled due to proper leave of absence or occasioned by sickness or disability. (d) Employees whose insurance has been canceled due to proper leave of absence or because of sickness or disability, and who return to work for immediate prior employer will again be covered by insurance, two (2) weeks after commencement of active continuous full-time employment. (e) All employees not described in subsections (b), (c) or (d) herein, shall be considered as new employees. 24

25 15.3 First Time Enrollment: The Company shall distribute enrollment packages and an enrollment form permitting the Company to withhold a portion of an enrolling employee's pay at least 30 days before the employee would be eligible for health care coverage. The Company shall collect completed enrollment packages and enrollment forms from employees, including the employees that decline enrollment in the SEIU Health and Welfare trust, and forward the completed enrollment packages and enrollment forms within five (5) business days of receipt from the employee Annual Open Enrollment: Each year during open enrollment the company shall distribute enrollment packages and forms to all eligible employees no later than November 1st, and send the completed enrollment forms to the fund by December 1st, for coverage beginning on January 1st The Company shall withhold the following amount per month from the pay of each employee who elects health care coverage for the employee only: 4/1/2013: $ /1/2014: $ /1/2015: $35.67 The Company shall withhold the following amount per month from the pay of each employee who elects health care coverage for the employee and the employee's children: 4/1/2013: $ /1/2014: $ /1/2015: $

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